TO, it’s good to see you back posting again on SI. I see it’s been several weeks since your last post.
Following on from your observation regarding MOT’s spin-off of its semiconductor business, I did some digging to find out more. I found the following extract on their web site ...
”SCHAUMBURG, Ill. – November 9, 2004 – The board of directors of Motorola, Inc. (NYSE: MOT) announced today that the company will distribute its equity interest in Freescale Semiconductor, Inc. (NYSE: FSL) to Motorola shareholders on December 2, 2004.”
If that’s what you’re referring to then it seems that the financial effects could have been reflected in their financials from about their 2005 to 2006 Annuals.
In my post #1107 that you referred to, I made reference to MOT’s Revenue and EBITDA performance.
I thought it may be pertinent to look a bit deeper into their Annual figures between Revenue and EBITDA ...
I had a look at the following ratios in this order :-
CoS/Revenue
SG&A/Revenue
R&D/Revenue
EBITDA/Revenue
In 2006 they had 69%, 10.5%, 9.6% and 11% based on an Annual Revenue of $42.9bil.
In 2007 they had 71%, 13.9%, 12.0% and 2.7% based on an Annual Revenue of $36.6bil.
In 2008 they had 70%, 14.3%, 13.6% and 1.6% based on an Annual Revenue of $30.1bil.
In 2009 they had 65%, 15.5%, 14.6% and 5.5% based on an Annual Revenue of $22.0bil.
It seems that their CoS has remained fairly constant relative to their Revenue, but their Running Expenses (SG&A) have not declined in line with the fall off in their top line Revenue. Their R&D budget remained fairly constant at about $4.1bil. from 2006 to 2008, but was reduced to about $3.2bil. in 2009. All of the above has, in turn, been reflected in the 50% decline in their EBITDA Margin from a healthier 11% in 2006 to about 5.5% currently. As we see it went as low as 1.6% in 2008.
So they may very well have disposed of their semiconductor business but it seems that they are not doing that well with what’s left over due to the smaller amount of Revenue that’s getting to their Bottom line from an ever decreasing Gross Revenue.
What do you think ? |
